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Yoda's Training Camp Inc. had $122,500 in operating income. Yoda's Training Camp Inc., had interest income of $25,000 and earned $70,000 in dividend income. Yoda's

Yoda's Training Camp Inc. had $122,500 in operating income. Yoda's Training Camp Inc., had interest income of $25,000 and earned $70,000 in dividend income. Yoda's Training Camp Inc. had an interest expense of $40,000. Using the corporate tax schedule below, what is Yoda's tax liability?

taxable incomeSupport Base TaxPercentage of Excess over Base
Up to $50,000$015%
$50,000-$75,0007,50025
$75,000-$100,00013,75034
$100,000-$335,00022,25039
$335,000-$10,000,000113,90034
$10,000,000-$15,000,0003,400,00035
$15,000,000-$18,333,3335,150,00038
More than $18,333,3336,416,66735

Assume a 70% dividend exclusion for dividend tax.

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